SPDR S&P Regional Banking ETF Forecast

SPDR S&P Regional Banking ETF downgraded to Buy Candidate
(Updated on May 06, 2024)

KRE Signals & Forecast

Mostly positive signals in the chart today. The SPDR S&P Regional Banking ETF holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $48.56 and $48.15. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, April 16, 2024, and so far it has risen 9.38%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The ETF should be watched closely.

Support, Risk & Stop-loss for SPDR S&P Regional Banking ETF

SPDR S&P Regional Banking finds support from accumulated volume at $49.46 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This ETF has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the ETF moved $0.648 between high and low, or 1.30%. For the last week, the ETF has had daily average volatility of 1.93%.

The SPDR S&P Regional Banking ETF is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some ETFS may go long and hard while being overbought and the RSI is still moving upwards. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely, and it is of great importance that the ETF manages to break the trend before that occurs.

Our recommended stop-loss: $48.12 (-3.86%) (This ETF has medium daily movements and this gives medium risk. The RSI14 is 76 and this increases the risk substantially. There is a buy signal from a pivot bottom found 14 days ago.)

Trading Expectations (KRE) For The Upcoming Trading Day Of Tuesday 7th

For the upcoming trading day on Tuesday, 7th we expect SPDR S&P Regional Banking ETF to open at $50.03, and during the day (based on 14 day Average True Range), to move between $48.94 and $51.16, which gives a possible trading interval of +/-$1.11 (+/-2.21%) up or down from last closing price. If SPDR S&P Regional Banking ETF takes out the full calculated possible swing range there will be an estimated 4.42% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $50.28 (0.46%) than the support at $49.46 (1.18%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.

Is SPDR S&P Regional Banking ETF ETF A Buy?

Several short-term signals are positive and we conclude that the current level may hold a buying opportunity, as there is a fair chance for SPDR S&P Regional Banking ETF to perform well in the short-term period. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this ETF since the last evaluation from a Strong Buy to a Buy candidate.

Current score: 3.948 Buy Candidate Downgraded

Predicted Opening Price for SPDR S&P Regional Banking ETF of Tuesday, May 7, 2024

The predicted opening price is based on yesterday's movements between high, low, and closing price.